General Mills has announced a $3 billion cost-reduction programme over the next four years as the packaged food giant seeks to restore growth amid prolonged pressure on consumer spending.
The company said approximately $2 billion of the planned savings will come through a sharper focus on products, categories and consumer trends that generate stronger demand, while an additional $1 billion will be delivered through an accelerated restructuring programme aimed at improving operational productivity.
Chief Executive Officer Jeff Harmening said the initiative would help offset inflationary pressures, support growth investments and strengthen earnings performance. General Mills expects to generate nearly $750 million in savings during fiscal year 2027.
The move comes as the company continues to navigate cautious consumer spending patterns driven by persistent economic pressures. General Mills reported flat organic net sales in the fourth quarter, while full-year organic sales declined 2%, reflecting weaker consumer sentiment and a shift toward lower-priced products.
The company also reported an operating loss of $2.1 billion in its latest quarter after investing in price reductions intended to attract value-conscious consumers.
Executives said consumer spending conditions are unlikely to improve significantly in the near term, prompting the company to intensify efforts around product innovation and strengthen the appeal of its brands.
According to General Mills, future growth initiatives will focus on increasing the “remarkability” of products by incorporating high-demand attributes such as protein-rich formulations, functional nutrition and bolder flavour profiles.
The company is also planning supply chain improvements designed to reduce costs while enabling faster innovation cycles and greater packaging flexibility as it adapts to changing consumer preferences.